American Water Works
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American Water Works missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank. GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
American Water Works logged revenue of $680.9 million. The nine analysts polled by S&P Capital IQ predicted sales of $699.6 million on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $623.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The nine earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. Non-GAAP EPS of $0.30 for Q4 were 14% lower than the prior-year quarter's $0.35 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.) GAAP EPS of $0.31 for Q4 were 35% higher than the prior-year quarter's $0.23 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.5%, 560 basis points worse than the prior-year quarter. Operating margin was 24.5%, 400 basis points worse than the prior-year quarter. Net margin was 8.1%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $658.9 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $2.98 billion. The average EPS estimate is $2.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 254 members out of 267 rating the stock outperform, and 13 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give American Water Works a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Water Works is outperform, with an average price target of $41.81.
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